Ch. 5- Supply Flashcards
Quantity supplied
The amount a supplier is willing and able to supply at a certain price
Supply
The amount of goods available
Law of supply
Tendency of suppliers to offer a good at a higher price
Supply schedule
A chart that lists how much of a good a supplier will offer at different prices
Variable
A factor that can change
Market supply schedule
A chart that lists how much of a good all supplier will offer at different prices
Supply curve
A graph of the quantity supplied of a good at different prices
Market supply curve
A graph of the quantity supplied of a good all suppliers will offer at different prices
Elasticity of supply
A measure of how consumers react to change in price
Marginal product of labor
The change in output from hiring one additional unit of labor
Increasing marginal returns
A level of production in which the marginal product of labor increases as the number of workers increase
Diminishing marginal returns
A level of production in which the marginal product of labor decreases as the number of workers increases
Fixed cost
It cost that does not change, no matter how much of a good is produced
Variable cost
It cost that rises or falls depending on how much is produced
Marginal revenue
The additional income from selling one more unit of a good: sometimes equal to price
